Sierra Bancorp Annual Report and 10-K 2014 - page 8

8
$_; olr-m‹ u;1o]mbŒ;7 m;| bm1ol; o= ŪƐƔĺƑƓƏ lbѴѴbom bm
ƑƏƐƓķ u;Ѵ-ঞˆ; |o ŪƐƒĺƒѵƖ lbѴѴbom bm ƑƏƐƒ -m7 ŪѶĺƐѶƔ lbѴѴbom
bm ƑƏƐƑĺ ;| bm1ol; r;u 7bѴ†|;7 v_-u; ‰-v ŪƐĺƏѶ bm ƑƏƐƓķ
as compared to $0.94 in 2013 and $0.58 for 2012. The
olr-m‹Ľv u;|†um om -ˆ;u-]; -vv;|v -m7 u;|†um om -ˆ;u-];
;t†b|‹ ‰;u; ƐĺƏƒѷ -m7 ѶĺƐѶѷķ u;vr;1ঞˆ;Ѵ‹ķ bm ƑƏƐƓķ -v 1ol-
r-u;7 |o ƏĺƖѵѷ -m7 ƕĺƔѵѷķ u;vr;1ঞˆ;Ѵ‹ķ bm ƑƏƐƒķ -m7 ƏĺƔƖѷ
-m7 ƓĺƕƓѷķ u;vr;1ঞˆ;Ѵ‹ķ =ou ƑƏƐƑĺ $_; olr-m‹Ľv Cm-m1b-Ѵ
r;u=oul-m1; blruoˆ;7 bm ƑƏƐƓ u;Ѵ-ঞˆ; |o u;1;m| ‹;-uvķ
7†; bm r-u| |o 0;‚;u ;1omolb1 1om7bঞomv |_-| 1om|ub0†|;7
|o u;7†1ঞomv bm momr;u=oulbm] -vv;|vķ Ѵo‰;u 1u;7b| 1ov|vķ
bm1u;-v;7 Ѵ;m7bm] -1ঞˆb|‹ķ -m7 v|uom] 1ou; 7;rovb| ]uo‰|_ĺ
$_ov; |u;m7v ‰;u; ;ˆb7;m| |o - Ѵ;vv;u ;Š|;m| bm ƑƏƐƒķ 0†|
=ou v;ˆ;u-Ѵ ‹;-uv rubou |o |_-| o†u Cm-m1b-Ѵ r;u=oul-m1;
‰-v l-|;ub-ѴѴ‹ blr-1|;7 0‹ -7ˆ;uv; ;1omolb1 1om7bঞomvĺ
;u|-bm u;]bomv o= -Ѵb=oumb-ķ bm1Ѵ†7bm] ;um o†m|‹ķ _-ˆ;
v_o‰m v|uom] ;1omolb1 blruoˆ;l;m| oˆ;u |_; r-v| 1o†rѴ; o=
‹;-uvķ -Ѵ|_o†]_ |_; u;1oˆ;u‹ _-v 0;;m vѴo‰;u |o |-h; _oѴ7 bm
many of our other markets.
;vrb|; |_; blruoˆ;l;m| bm ƑƏƐƓķ m;| bm1ol; u;l-bmv ‰;ѴѴ
0;Ѵo‰ Ѵ;ˆ;Ѵv -1_b;ˆ;7 bm ru;Ŋu;1;vvbom ‹;-uv -v 1olr;ঞঞˆ;
ru;vv†u;v 1omঞm†; |o |-h; |_;bu |oѴѴ om Ѵo-m u-|;v -m7 m;|
bm|;u;v| bm1ol;ķ -m7 1;u|-bm ;Ѵ;l;m|v o= momŊbm|;u;v| bm1ol;
_-ˆ; -Ѵvo 7;1Ѵbm;7 bm u;vromv; |o bm7†v|u‹Ŋ‰b7; u;]†Ѵ-|ou‹
ru;vv†u;vĺ -fou ˆ-ub-m1;v blr-1ঞm] |_; olr-m‹Ľv u;v†Ѵ|v
o= or;u-ঞomv bm u;1;m| ‹;-uv -u; 7bv1†vv;7 bm |_; r-u-]u-r_v
below.
;| bm|;u;v| bm1ol; bm1u;-v;7 0‹ Ѷѷ bm ƑƏƐƓ 7†; |o ]uo‰|_
bm -ˆ;u-]; bm|;u;v|Ŋ;-umbm] -vv;|v |_-| ‰-v =†m7;7 rubl-ubѴ‹
0‹ Ѵo‰Ŋ1ov| momŊl-|†ub|‹ 7;rovb|vķ 0†| m;| bm|;u;v| bm1ol;
=;ѴѴ 0‹ Ɠѷ bm ƑƏƐƒ u;Ѵ-ঞˆ; |o ƑƏƐƑ 7†; |o m;| bm|;u;v|
l-u]bm 1olru;vvbomĺ ˆ;u-]; bm|;u;v|Ŋ;-umbm] -vv;|v ‰;u; †r
bm ƑƏƐƓ 7†; |o v|uom] ]uo‰|_ bm |_; -ˆ;u-]; 0-Ѵ-m1; o= u;-Ѵ
;v|-|; Ѵo-mv -m7 -77bঞomv |o o†u bmˆ;v|l;m| rouoѴboĺ $_;
olr-m‹Ľv m;| bm|;u;v| l-u]bm _-v 0;;m 7;1Ѵbmbm] bm u;1;m|
r;ubo7vķ _o‰;ˆ;uķ 7†; bm Ѵ-u]; r-u| |o 1olr;ঞঞˆ; ru;vv†u;v
om Ѵo-m ‹b;Ѵ7v -m7 7bvruorouঞom-|; bm1u;-v;v bm Ѵo‰;uŊ‹b;Ѵ7-
bm] bmˆ;v|l;m| 0-Ѵ-m1;vĺ
†u Ѵo-m Ѵovv ruoˆbvbom |o|-Ѵ;7 omѴ‹ ŪƒƔƏķƏƏƏ bm ƑƏƐƓķ u;Ѵ--
ঞˆ; |o ŪƓĺƒƔƏ lbѴѴbom bm ƑƏƐƒ -m7 ŪƐƓĺƑƐƏ lbѴѴbom bm ƑƏƐƑĺ
†ubm] |_; u;1;vvbom -m7 =ou v;ˆ;u-Ѵ ‹;-uv |_;u;-[;uķ o†u Ѵo-m
Ѵovv ruoˆbvbom ‰-v †m†v†-ѴѴ‹ _b]_ 7†; |o |_; ;v|-0Ѵbv_l;m|
o= vr;1bC1 u;v;uˆ;v =ou blr-bu;7 Ѵo-mvķ |_; u;rѴ;mbv_l;m| o=
u;v;uˆ;v v†0v;t†;m| |o Ѵo-m 1_-u];Ŋo@vķ -m7 |_; 0†bѴ7†r o=
];m;u-Ѵ u;v;uˆ;v =ou r;u=oulbm] Ѵo-mv 7†; |o _b]_;u _bv|oub-
1-Ѵ Ѵovv =-1|ouvĺ $_; u;7†1ঞom o= ŪƓĺƏƏƏ lbѴѴbom bm |_; Ѵo-m
Ѵovv ruoˆbvbom bm ƑƏƐƓ _-7 |_; vbm]Ѵ; Ѵ-u];v| blr-1| om o†u
blruoˆ;l;m| bm m;| bm1ol;ķ -m7 ‰-v ;m-0Ѵ;7 0‹ - Ѵo‰;u Ѵ;ˆ;Ѵ
o= blr-bu;7 Ѵo-mvķ u;7†1;7 Ѵo-m Ѵovv;vķ -m7 7;1Ѵbmbm] ];m;u-Ѵ
reserves for non-impaired loans consistent with improved
1u;7b| t†-Ѵb|‹ĺ
omŊbm|;u;v| bm1ol; =;ѴѴ 0‹ ŪƐĺƑƒƑ lbѴѴbomķ ou ƕѷķ bm ƑƏƐƓ
u;Ѵ-ঞˆ; |o ƑƏƐƒķ -m7 ‰-v 7o‰m ŪƐĺƏѵƒ lbѴѴbomķ ou ѵѷķ bm
ƑƏƐƒ 1olr-u;7 |o ƑƏƐƑĺ $_; Ѵ-u];v| †m=-ˆou-0Ѵ; ˆ-ub-m1;v
‰b|_bm |_bv 1-|;]ou‹ bm ƑƏƐƓ bm1Ѵ†7; - 7uor bm oˆ;u7u-[
bm1ol; -m7 1;u|-bm o|_;u 7;rovb| =;; bm1ol;ķ Ѵo‰;u bm1ol; om
0-mhŊo‰m;7 Ѵb=; bmv†u-m1; Őľ Ŀő -vvo1b-|;7 ‰b|_ 7;=;uu;7
1olr;mv-ঞom rѴ-mvķ -m7 Ѵo‰;u l;u1_-m| =;;vĺ omŊu;1†uubm]
life insurance proceeds received in 2013 also contributed to
the drop in non-interest income in 2014. These unfavorable
1_-m];v ‰;u; r-uঞ-ѴѴ‹ o@v;| 0‹ ŪѵѵƕķƏƏƏ bm ]-bmv om |_;
v-Ѵ; o= bmˆ;v|l;m| v;1†ubঞ;v bm ƑƏƐƓķ u;Ѵ-ঞˆ; |o omѴ‹ ŪѵķƏƏƏ
bm ]-bmv bm ƑƏƐƒĺ $_; lov| vb]mbC1-m| =-1|ou bm |_; 7uor bm
momŊbm|;u;v| bm1ol; bm ƑƏƐƒ ‰-v bmˆ;v|l;m| ]-bmv |o|-Ѵbm]
$1.762 million in 2012.
r;u-ঞm] ;Šr;mv; _-7 0;;m |u;m7bm] 7o‰m 7†; |o Ѵo‰;u 1ov|v
-vvo1b-|;7 ‰b|_ o|_;u u;-Ѵ ;v|-|; o‰m;7 Őľ ! Ŀő -m7 o|_;u
1u;7b|Ŋu;Ѵ-|;7 ;Šr;mv;vķ 0†| ‰-v †r 0‹ ŪƐĺƔѵƏ lbѴѴbomķ ou ƒѷķ
bm ƑƏƐƓ u;Ѵ-ঞˆ; |o ƑƏƐƒ l-bmѴ‹ -v - u;v†Ѵ| o= momŊu;1†uubm]
-1t†bvbঞom 1ov|vĺ bu;1| 1ov|v bm1†uu;7 ou -11u†;7 bm 1om-
f†m1ঞom ‰b|_ o†u -1t†bvbঞom o= " ( |o|-Ѵ;7 ŪƑĺƏƕƏ lbѴѴbom
bm ƑƏƐƓķ -m7 o|_;u vb]mbC1-m| †m=-ˆou-0Ѵ; momŊbm|;u;v|
;Šr;mv; ˆ-ub-m1;v bm1Ѵ†7; _b]_;u r;uvomm;Ѵ 1ov|vķ om]obm]
-m7 momŊu;1†uubm] 1ov|v -vvo1b-|;7 ‰b|_ o†u 1ou; v‹v|;l
1omˆ;uvbomķ -m7 1ov|v -vvo1b-|;7 ‰b|_ o†u u;0u-m7bm] ruof;1|ĺ
$_;v; bm1u;-v;v ‰;u; r-uঞ-ѴѴ‹ o@v;| 0‹ m;| ]-bmv om |_; v-Ѵ;
o= ! ĺ $_; 7uor o= ŪƐĺѶƓƐ lbѴѴbomķ ou Ɠѷķ bm |o|-Ѵ or;u-ঞm]
expense in 2013 is mainly due to lower net costs on foreclosed
-vv;|vķ r-uঞ-ѴѴ‹ o@v;| 0‹ _b]_;u v-Ѵ-ub;v -m7 0;m;C|vĺ
$_; olr-m‹ _-7 |-Š ruoˆbvbomv o= ŪѵĺƐƖƐ lbѴѴbomķ ou ƑƖѷ o=
ru;Ŋ|-Š bm1ol; bm ƑƏƐƓ -m7 ŪƒĺƏƖƒ lbѴѴbomķ ou ƐƖѷ o= ru;Ŋ|-Š
bm1ol; bm ƑƏƐƒķ -m7 - |-Š 0;m;C| o= ŪƒƓƓķƏƏƏ bm ƑƏƐƑĺ $_;
_b]_;u |-Š ruoˆbvbombm] u-|; bm ƑƏƐƓ -m7 ƑƏƐƒ ‰-v 7†; |o
_b]_;u |-Š-0Ѵ; bm1ol; u;Ѵ-ঞˆ; |o |_; olr-m‹Ľv -ˆ-bѴ-0Ѵ; |-Š
1u;7b|vķ -m7 |_; |-Š 0;m;C| bm ƑƏƐƑ ‰-v rubl-ubѴ‹ |_; u;v†Ѵ|
o= Ѵo‰;u |-Š-0Ѵ; bm1ol; u;Ѵ-ঞˆ; |o |_; olr-m‹Ľv -ˆ-bѴ-0Ѵ;
tax credits.
RESULTS OF OPERATIONS*
Ŗ olrѴ;|; Cm-m1b-Ѵ bm=oul-ঞom bv 1om|-bm;7 bm |_; olr-m‹Ľv oul ƐƏŊ bm1Ѵ†7;7 _;u;‰b|_